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Mogul Minute 08/23/2016

August 23 | 2016

Here at RealtyMogul.com, we keep our finger on the pulse of all things real estate, from finance to technology and everything in between. We make a point of sharing interesting articles and think pieces among RealtyMogul.com staff to help our team stay abreast of the market, and ahead of the curve.

So we thought, why not share some of these insights with you, our partners?

Got A Minute? Here’s some recommended reading with key points from the content:

A big year in back to school shopping is on the way as “the National Retail Federation estimates that parents of K-12 and college students will spend a record $75.8 billion this year, up 11.5% from 2015.”

E-commerce also continues to take a bigger chunk of brick-and-mortar sales as they captured 7.8% of all retail sales in 1Q. 2Q online sales were up 15% from the first quarter.

The Cities Adding the Most Jobs in The Country May Surprise You (Bisnow)

The first half RCA data is in and the story is similar to Q1 as activity is still elevated but far below a banner 2015 with regards to transaction activity. RCA has found this is largely due to a lack of portfolio deals in 2016 as “portfolio deals were down 39 percent in the first half of this year compared to the same period in 2016. In the second quarter alone, portfolio deals showed a 47 percent year-over-year slide.”

Transaction volume on single-asset deals are pretty close to flat from last year.

“The biggest loser so far this year has been the hospitality sector, with deal volume down 57 percent”, says Rene Circ, director of research with Costar Portfolio Strategy

Multifamily activity is actually up 10% from the second half of 2015.

Among the lack of portfolio sales, other significant drivers mentioned are the CMBS slowdown in Q1 and increased scrutiny from cross-border investors.

“We expect cap rates to remain flat for the rest of the year; Class-A has compressed as much as it can, but there is possibility for cap rate compression in B markets,” Circ says.

Allergan its relocating its US headquarters from Parsipanny, NJ to Madison, NJ (5 Giralda Farms) after they were given $58M in state incentives to help make the move. They will be consolidating three of its existing office and the new office space will house a total of 1,800 employees.

Brick and Mortar Retail Isn’t Going Anywhere But Seas of Parking are Out (Bisnow)

Some interesting quotes from the most recent Bisnow Retail and Hospitality Event:

With regards to retail and parking. “It’s less about parking now and more about walkability, when people used to see a sea of parking.” – Heather Personne, ViaWest Group president. “We’ve already seen the effects of Uber and Lyft, so it will be interesting to see how self-driving cars impact parking as well” – Jeff Carpenters, SimonCRE.

On the movement towards a more health conscience diet: “Everyone is starting to realize that they can’t eat saturated fats and expect to live past 65. A lot of the health issues we deal with, including anxiety and depression, are connected to the ingredients in the food we eat. In five to seven years, people will look back in disbelief at the food they used to eat” – Ryan Hibbert, Riot Hospitality president.

A detailed look at a massive development in Frisco, TX, a north Dallas suburb, that will cost $5B and encompass the Cowboy’s new headquarters and practice facility, retail, office space, mall, and entertainment. The suburb has seen substantial growth in recent years.

Written by Tim Ednoff, Associate - Commercial Equity at RealtyMogul.com

Tim evaluates investment opportunities as well as performs due diligence and writes content for various equity and debt transactions. Outside of the office, Tim is an avid sneaker collector, a passionate health and fitness advocate, and a dedicated podcast enthusiast.